Q /08/18. Jon Skule Storheill. Øyvind Ryssdal

Transcription

1 Q Jon Skule Storheill Øyvind Ryssdal 30/08/18-1 -

2 Disclaimer This presentation may include certain forward-looking statements, forecasts, estimates, predictions, influences and projections regarding the intent, opinion, belief, various assumptions or current expectations of Awilco LNG (the Company ) and it s management with respect to, among other things, (i) goals and strategies, (ii) evaluation of the Company s markets, competition and competitive position, and (iii) anticipated future performance and trends which may be expressed or implied by financial or other information or statements contained herein. All statements, other than statements of historical facts, that address activities and events that will, should, could or may occur in the future are forward-looking statements. Words such as may, could, should, would, expect, plan, anticipate, intend, forecast, believe, estimate, predict, propose, potential, continue or the negative of these terms and similar expressions are intended to identify such forward-looking statements. These forward-looking statements, forecasts, estimates, predictions, influences and projections are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that will occur in the future, some of which are beyond our control and difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements, and no representation is made as to the accuracy of these. Among the important factors that could cause actual results to differ materially from those in the forward-looking statements, forecasts, estimates, predictions, influences and projections are: changes in LNG transportation market trends; changes in the supply and demand for LNG; changes in trading patterns; changes in applicable maintenance and regulatory standards; changes in applicable regulations and laws; technological developments affecting gas and LNG demand; political events affecting production and consumption of LNG; changes in the financial stability of clients of the Company; the Company s ability to secure employment for available vessels and newbuildings on order; increases in the Company s cost base; failure by yards to comply with delivery schedules; changes to vessels useful lives and residual values; the Company s ability to obtain financing of the newbuildings and lastly unpredictable or unknown factors with material adverse effects on forward-looking statements. Neither the receipt of this presentation by any person, nor any information contained herein, constitutes, or shall be relied upon as constituting, any advice relating to the future performance of the Company. Each person should make their own independent assessment of the merits of the Company and its business and should consult their own professional advisors. The information and opinions contained in this presentation relate only as of the date of this presentation, and are subject to change without notice. Neither the Board of Directors of the Company or the Company and it s management make any representation or warranty, express or implied, as to the accuracy or completeness of this presentation or of the information contained herein and none of such parties shall have any liability for the information contained in, or any omissions from, this presentation, nor for any of the written, electronic or oral communications transmitted to the recipient in the course of the recipient s own investigation and evaluation of the Company or its business. Unless legally required, the Company assumes no responsibility or obligation to update publicly or review any of the forward-looking statements contained herein, whether as a result of new information, future events or otherwise

3 Company overview Awilco LNG is a fully integrated pure play LNG transportation provider, owning and operating LNG vessels. The Company owns two 2013 built 156,000 cbm TFDE membrane LNG vessels, WilForce and WilPride. Awilco LNG is listed on Oslo Axess under the ticker code ALNG

4 Agenda 30/ Highlights 2. Financials Q2 3. Market update 4. Summary - 4 -

5 2 nd quarter highlights 2 nd quarter 2018 Awilco LNG reported: Net freight income MUSD 4.6 MUSD 12.5 in Q EBITDA MUSD 1.9 MUSD 9.5 in Q Net profit/(loss) MUSD (6.5) MUSD 1.0 in Q Vessel utilisation of 71 % compared to 97 % previous quarter TCE* of USD ~27,900 pd (USD ~69,200 pd in Q1 2018), current CBE** of USD ~53,000 pd Subsequent events WilForce committed on a 9-12 month time charter contract to an oil and gas major, scheduled delivery 5 September, expected annualised EBITDA contribution of MUSD 26 WilForce completed dry-docking in mid-august 2018 on time and on budget, at a cost of about MUSD 3.5 and incurring 21 offhire days *TCE: net freight income divided by the number of calendar days minus off-hire days **CBE: Cash break even in USD per day including operating expenses, administration expenses, dry-docking and financing costs (estimated) - 5 -

6 Agenda 30/ Highlights 2. Financials Q2 3. Market update 4. Summary - 6 -

7 Q income statement USD million Q2 18 Q Freight income Voyage related expenses (1.8) (1.4) (6.9) Net freight income Operating expenses (2.0) (1.9) (7.9) Administration expenses (0.7) (1.0) (3.9) EBITDA Depreciation (3.3) (3.2) (12.3) Net finance (5.2) (5.3) (21.2) Profit/(loss) before tax (6.5) 1.0 (31.8) Tax Profit/(loss) (6.5) 1.0 (31.8) - 7 -

8 Q financial position USD million Vessels Total non-current assets Trade receivables Other short term assets Cash Total current assets Total assets Total equity Long-term interest bearing debt Other non-current liabilities Non-current liabilities Short-term interest bearing debt Other current liabilities Total current liabilities Total equity and liabilities

9 Q cash flow USD million Q2 18 Q Cash Flows from Operating Activities: Profit/(loss) before taxes (6.5) 1.0 (31.8) Income taxes paid Interest and borrowing costs expensed Depreciation, amortisation and impairment Trade receivables, inventory and other short term assets (1.6) Accounts payable, accrued exp. and deferred revenue 1.2 (2.0) 1.1 Net cash provided by / (used in) operating activities Cash Flows from Investing Activities: Investment in vessels (2.1) (1.1) (2.3) Net cash provided by / (used in) investing activities (2.1) (1.1) (2.3) Cash Flows from Financing Activities: Gross proceeds from equity issue Transaction costs of equity issue - - (0.7) Repayment of borrowings (1.1) - (5.6) Interest and borrowing costs paid (5.1) (5.4) (21.4) Net cash provided by / (used in) financing activities (6.2) (5.4) (0.9) Net changes in cash and cash equivalents (3.6) 1.1 (1.1) Cash and cash equivalents at start of period Cash and cash equivalents at end of period

10 Agenda 30/ Highlights 2. Financials Q2 3. Market update 4. Summary

11 LNGC rates USD/DAY Avg. spot rate k ST Avg. spot rate k TFDE Historic ave. spot rate k ST Historic ave. spot rate k TFDE Utilisation and rates softening into shoulder season, troughed in May and showed counter seasonal strength in June Average headline rates in Q % higher y-on-y Source: Fearnley LNG

12 Monthly global LNG trade MT LNG Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Range Average (est) Global LNG trade up by 6 % in H1 2018, equating to 8.2 MT Trade growth due to ramp up of production capacity added second half 2017 and new liquefaction plants added in Q in Cameroon, the US and Australia, which was offset by planned maintenance and minor outages at multiple liquefaction plants in the first half of 2018 Source: Clarksons Platou

13 Gas price USD/BBL 120 USD/MMBTU Brent (USD/BBL) HH NBP Spot DES Japan Far east prices softening into shoulder season, but due to warmer weather earlier than expected Asian buying interest surged in June, opening the West East arbitrage Arbitrage wide open this winter; JKM Nov-Feb futures avg. USD ~12.6/MMBTU HH Nov-Feb futures avg. USD ~3.0/MMBTU Source: Clarksons Platou, CME

14 LNG trade change MT LNG 10,0 LNG EXPORT CHANGE YOY JUNE 2018 LNG IMPORT CHANGE YOY JUNE 2018 MT LNG 10,0 8,0 8,0 6,0 6,0 4,0 4,0 2,0 2,0 0,0 0,0-2,0-2,0 LNG exports increased by 6 % Three production plants commenced operations in Q2; Cove Point in the US in April, FLNG Hilli Episeyo in Cameroon in May and Wheatstone T2 in Australia in June Ramp up of capacity added in 2017 also contributed to export growth, but was partly offset by minor outages and maintenance projects Continued fuel switching in China and South Korea resulting in y-on-y import growth of 50 and 16 % respectively Source: Clarksons Platou, Energy Aspects

15 LNG production MTPA LNG TRAINS UNDER CONSTRUCTION MTPA Started Total (RHS) 30 MTPA new liquefaction capacity expected to start up in 2018, and a further 61 MTPA in Beyond 2020 over 700 MTPA new LNG production is in planning stages with some 200+ in pre-fid phase with specified timeline Source: Clarksons Platou, Arctic Securities, Fearnley LNG, Company presentations

16 LNG fleet and orderbook NO. VESSELS 60 LNG FLEET AND ORDERBOOK MID-AUGUST 2018 TOTAL FLEET Open order (LHS) Committed Order (LHS) Delivered (LHS) Total fleet (RHS) 35 vessels delivered in further vessels scheduled for delivery this year Total fleet of 465 vessels > 100 cbm 19 laid up, 74 built before year 2000, 3 scrapped in 2018 (same as in 2017) 33 newbuilding orders so far in 2018, total orderbook at 90 vessels of which 31 assumed available Source: Fearnley LNG, Tradewinds

17 Agenda 30/ Highlights 2. Financials Q2 3. Market update 4. Summary

18 Summary Increasing gas demand in the Far East coupled with new LNG supply has absorbed tonnage and improved tonmile Charterers have, and are continuing to, position for a firm winter market, arbitrage is wide open and Owner s expectations are correspondingly high Mid- and long-term demand for LNG transportation remains strong Growing global gas demand is expected to trigger FIDs in the near future for the next liquefaction wave 74 vessels built prior to 2000, smaller and inefficient Awilco LNG Pure play fully integrated LNG transportation company with excellent operational track record Firm earnings from WilForce for 9-12 months supporting spot exposure strategy on WilPride in what is expected to be a firm winter market Actively pursuing refinancing at improved terms Awilco LNG is well positioned for the improving market

19 Q&A A Fully Integrated Pure Play LNG Transportation Provider Two 2013 built TFDEs Tier 1 customers Solid owners Experienced management team Opportunistic strategy

20 Jon Skule Storheill CEO Mobile: Øyvind Ryssdal CFO Mobile: